Nightmarish Property Investment Mistakes – And How To Avoid Them
On the face of things, investing in property is an incredibly appealing idea. You see house prices rising all the time, and think to yourself that you would love a piece of that pie. However, it’s for this reason that you should be careful when starting out in property investment.
The sums of money involved are no laughing matter, and any mistake you make could end up costing you a fortune. Here are some fatal property investment mistakes that many first-timers often fall for – don’t become one of the statistics by joining them!
Lack of planning
The honest truth is that people think they know a lot more about the property market than they actually do. Most first-timers will see buying a property as a transaction or a deal, but it’s not either – it’s an investment, pure and simple. And as any successful investor will tell you, the only reason they have got where they are today is that they carefully planned every last investment they made.
The emotional errors
People often fall in love with a house and make it a priority. But in the vast majority of cases, this will only lead to irrational and blind decisions. Anyone investing in a property needs to keep their emotions at bay, and only think regarding the numbers. One good way of dealing with this is to avoid making offers on a single property and always have multiple options.
Going it alone
You can spend months reading up advice on property investment online, or attend ‘get rich in property’ courses that are routinely held up and down the country. But, ultimately, you will still be short on experience when it comes to successful property investment. You will need a lot of help when you are just starting out. Find a property investment company who can help you find your feet. Or, alternatively, get a mentor with plenty of experience you can draw upon. Never go it alone – it is only an option when you have built up plenty of experience yourself.
Avoiding due diligence
Nothing will put a roomful of people to sleep faster than an afternoon in a stuffy office discussing due diligence. But you will have to suck it up, consume plenty of caffeine, and ensure you tick all the required boxes. Sure, investors have to move fast to get the best deals, but avoiding due diligence is like signing your own death warrant. Eventually, you will be caught out, and you will end up with a property you cannot afford.
Inability to strike a deal
Our final point is critical. If you are incapable of negotiating, it’s not going to bode well for your property investment career. Paying too much for a property means you will be locking out your profits until you get rid of it – and it will be difficult to do so without incurring a loss. Don’t forget, your financial security is at stake, here, and any major mistake is going to wallop you in the pocket. It can take years to learn how to never pay over the odds – but it is an essential skill you need to develop. Good luck!